A framework I presented to web developers to think how companies use social media, who and why spend money on Social Media. The presentation was aimed to help developers generate new ideas when they build the next cool “stuff”.

1. What to build & how to
make money out of that
Social Media?
-A Marketer’s Perspectives
By Michelle Zou
November 4, 2009

2. What to Expect and NOT to Expect
From the Presentation
• You will NOT learn what specific features to
build on Social Media
• But you WILL learn a framework to think
– how companies use Social Media
– who and why spend money on Social Media
This will help YOU generate new ideas when
you build the next cool “stuff”
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3. Yes, you can build cool stuffs
BUT…
What you built You get PAID
Who use it?
Who can you make money from?
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4. Who Use Social Media?
Businesses want to take
Consumers advantages of Social
Media’s ability to send
just the right message
to the right people
Social
Media
Customer
Marketing
Support User publish
&
share
Businesses Jumped Into Social Media!!!
Product
Developmt.
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5. Consumers vs. Marketers
Marketers…
Consumers… Targeting
Communicating
FREE! Demand Generating
But I will Pay for some “stuff “…
ROI……
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6. Help Businesses to Market to Target Audience
Marketers Spent on:
Campaigns/ Ads
Tools to help them to reach target audience
(Applications, Widgets, etc.)
Business Intelligence / Customer Intelligence
Analytical tools
Opportunity:
Help Marketers to
DO THEIR JOB EASILY
• 95% of 1,217 business decision makers surveyed late last
year said they plan to use social networks.
• 53% of more than 300 marketers planned to increase
social-media marketing spending (in 2009)
- From Forrester Research 6

7. The Marketer’s Job
Market Segments
Message…
Target Audience
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8. How Marketers Use Social Media?
Market Segments
Find
Target Audience Reach
Listen
Message…
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9. Microsoft Example
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10. Microsoft Example
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11. Microsoft Example
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12. Microsoft Example
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13. How to Make Money From
Consumers?
Think Beyond Ad-Funded FREE SN Services…
Play “NICHE”
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14. And go VIRAL …
Use those “Social Network
Butterflies”
14

15. And be
CREATIVE…
The Successful Business Models for Making Money From Consumers
QQ’S MONEY MAKING SECRETS
15

16. How much can you spend on QQ
services/year?
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17. US$ 300,000
And that is $30M for your life (100 years)!
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18. QQ/Tencent – a BILLION Dollar Company
QQ Services 2008 Result YOY Growth
• Information:
– Portal QQ.com Revenue $1,047M 87%
• Communication: IVAS $719M 96%
– Messenger (QQ IM, Mobile IM
& SMS, Corporate, Web QQ) Mobile VAS $205M 73%
– QQ Mail
Online Ads $121M 68%
• Social networking/Blogging
– QQ Zone
IVAS • Entertainment:
– QQ Live – TV service
– QQ Show – Avatars and QQ/Tencent 2008 Revenue
Personal Expression
Online Ads
– QQ Pet Mobile & 11%
– QQ Game telecom VAS
20%
• Online auction business
– Paipai – C2C Auction
• Search (Soso) IVAS
• Mobile VAS (the above PC 69%
services on mobile phones)
• Payment
– QQ Payment 18

19. QQ’s Money Marking Formula
Free to HOOK you in
Digital assets you paid to
+ Micro-transactions acquire will EXPIRE!
+ Monthly Subscription (31.4M IVAS + 14.7M MVAS accts)
+ Ads
subscription for “add-
------------------------------------------ on” services
$$$$$$$$ ($1.5/month for EACH
service)
Micro-transactions for “add-on”
services ($0.15-$2/transaction)
The slides after are a few # of users exposed
examples of QQ IVAS
business model
Free for entry level services
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20. QQ IM
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21. QQ Instant Messenger
• Free IM service monetize by
QQ Membership • Ads
“VIP3”
• VAS services integrated to
Ads the QQ IM platform such as
avatar (See QQ Show)
• VIP Membership
The buddy’s
avatar, paid or QQ • QQ VIP membership:
membership RMB10/month ($1.5/month)
subscription to
acquire from QQ
• Six VIP ranks: VIP1-6, can
Show.
grow by usage or payment
methodologies
• QQ membership benefits:
– More features: can have large
groups; such as faster growth in
Free entry level the ranking system; exclusive
avatar for emoticons; QQ VAS discounts;
female & male more online storage (non-
member 16M, VIP members
128M-1.6G)
– Discounts in real life services:
movie tickets, shopping (online
& offline), airline tickets, e-
learning
– Privilege in QQ games: new
games, discount in game
Ads avatars, exclusive gifts
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22. QQ Monetization: VAS services integrated
to QQ Platform
VAP services integrated to
QQ IM platform
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23. QQ Show
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24. QQ Monetization: QQ Show
• QQ Show is the avatar (display picture) that represent the user anywhere in the
QQ platform.
• The default avatar is very plain (almost naked). Personalize avatars is very
popular in the QQ world, users can customize almost everything, the face, the nose,
the eyes, etc. Users can also buy the clothes, accessories and background to make
their online images pretty.
They expire in 3 months
These components are cost 2-4.5 QQ coins each
($0.3-$0.7), users can buy, send gift, or ask as a
gift from friends
To get the whole set on the left
will cost 14 QQ coins ($2)
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25. QQ Monetization: QQ Show
Membership Red Diamond
•QQ Show Red Diamond membership
through monthly subscription:
Showing in your
contact card
RMB10/month ($1.5); users lose all the QQ
shows acquired once subscription stopped.
•Seven ranks: LV1-7, can grow by usage or
payment methodologies.
Showing in the
conversation window
•Membership Benefits: all QQ Shows are
free to get; special sign to show your
membership identity; can set change QQ
shows automatically; can send free QQ
show gifts to friends;
Showing in your profile
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26. Always be able to get things
with discount.
*Ask others to pay for you
Buy for other people
Buy it
• Every small module is personalizable.
• A bunch of choices
• Affordable prices to buy Add to your ‘wish box’
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27. QQ Show: Take a photo with
someone
Different choice of the
background (free or cost 1-
2QQ coins)
Show the photo on QQ- need
to pay 3 Q-coins
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28. Q-zone
(Blogging & SN Service)
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29. QQ Monetization: Qzone and
•
Membership Yellow Diamond
Every customizable element can be purchased (0.12 - Qzone Yellow Diamond membership:
1.2USD/element) RMB10/month
• Songs in the media library for users to put in their Seven ranks: LV1-7, can grow by usage or
music box are for sale (0.3USD/song)
• Q-zone membership (1.25USD per month)
payment methodologies
Benefits: all decorations for Qzone are free to
Qzone “mall” to purchase all kinds of get; 1G photo album; special sign to show
items: Skin, theme, display pictures,
flash, music box, etc. your membership identity
Qzone features are free for entry
level; charges for personalization
(decoration items) or upgraded
services such as playing background
music, more online storage for
album, etc.
“Yellow Diamond” sign
Showing in your QZone
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30. Q-Zone
• Features: blog, music box, album, mini house and garden, personalization and decoration, etc.
• Every element is customizable with many choices. (Flash loading animation, Background, skin, media
player, navigation, decoration, photo booth, and etc.)
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31. • Qzone plant to show how healthy your Qzone
Album •
is –need QQ points to get them grow
Pay to get more storage
http://119489818.qzone.qq.com/
Earn 1 score per one visit
Earn 3 scores per one content
adding
Earn 1 score per one visitor’s
comment
Earn 8 scores per 1 QQ money
spent for QQ purchase.
All the plants are levelized. You
can only buy the plants within you
level of score.
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32. Music box
http://93521903.qzone.qq.com/
• Music box can download and play music as background for the Qzone
•All the music need to be purchased ($0.3/song)
•Green Diamond Membership can download all music: RMB10/month ($1.5)
•
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33. Mini place
• User can build different houses by purchasing all the furniture and decoration.
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34. QQ Game
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35. Buy entry animation for QQ games
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36. Pay to play QQ games
A simple online gamble game, QQ takes away 20% of the money
Promotion example for Blue Diamond members
QQ Dou Di Zhu
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37. QQ Pet
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38. Features and Monetization
Virtual pet. Users don’t need to spend much time breeding pet on daily
bases. But they need to complete the tasks regularly, e.g. breeding.
 User can provide things that the pet needs daily by playing small games
with it.
 User can apply the special QQ pet’s winks in IM conversation to express
the special feelings.
 User can play with pet on the desktop.
 Attend the pets’ community
Monetization:
• Buy some goods for pet.
• It needs to pay to bring pet from
dead
• Join special social network needs
money.
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39. Even QQ numbers can make
$$$! Monthly subscription fee
(10 QQ coins/Month)
+ Initial fee
-------------------------------
> $20/year/QQ ID
QQ sells special numbers
(millions of them), they are
easier to remember, with
lucky “6” or “8” in,
associated to mobile
numbers, birth day, year,
events, you name it!
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40. Thank You!
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